STAND

 

STAND. COM. REP. 2393

Honolulu, Hawaii

, 2004

RE: S.B. No. 2957

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Health and Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2957 entitled:

"A BILL FOR AN ACT RELATING TO HOSPITAL AND PROFESSIONAL LIABILITY RISK FINANCING,"

beg leave to report as follows:

The purpose of this measure is to require the Hawaii Health Systems Corporation to organize a domestic captive insurance company to provide malpractice coverage to the Department of Health, the John A. Burns School of Medicine, and other governmental entities or quasi-governmental entities of the State involved in the provision of health care.

Testimony in support of this measure was received from the Department of Health, University of Hawaii, and Hawaii Health Systems Corporation.

Your Committees find that establishment of a captive insurance company domiciled in the State is vitally essential to the future viability of government and quasi-government entities of the State involved in the provision of health care because it will help reduce costs and control losses. The cost of purchasing medical malpractice and hospital professional and general liability coverage is becoming prohibitive, and for some, unavailable.

Your Committees have made technical, nonsubstantive amendments to this measure.

As affirmed by the records of votes of the members of your Committees on Health and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2957, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2957, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Commerce, Consumer Protection and Housing,

____________________________ RON MENOR, Chair		____________________________ ROSALYN H. BAKER, Chair